The Triangle at turning point

Visitors to the Triangle walk past the Saddle Ranch Chop House, at left. The Triangle has several new, popular restaurants, businesses are moving in and parking has been reorganized. It's being remade by the new owners. On the right is a new Mexican restaurant called El Corazon de Costa Mesa.CHRISTINE COTTER, ORANGE COUNTY REGISTER

Twenty percent. That was the dismal occupancy rate of Triangle Square in December 2010, when Greenlaw Partners and two institutional real estate equity firms bought the property at the intersection of Harbor Boulevard, Newport Boulevard and 19th Street.

The new ownership has spent about $20 million on improvements, changed the name to The Triangle and added lighting, new tenants and valets for the parking garage. They've shifted the focus from retail to entertainment and restaurants. Occupancy will increase to about 80 percent when Tavern+Bowl moves in this fall, said Wil Smith, whose company, Greenlaw, is the operating partner for The Triangle and its ownership company, WWG TSQ Owner.

But for a center that has seen repeated ups and downs since its start in 1992, there could still be bumps in the road. The two highly visible corner anchor spots at street level stand empty. New restaurants opened later than initially planned and appear to still be working out the kinks.

"This is the failed retail center for the last two decades," Smith said. "This property had a major perception problem."

Yet, the staying power of longtime tenants like Sutra nightclub and Yard House restaurant showed something, he said.

"We knew that the formula for restaurants and entertainment was successful."

Ups and downs

The idea for Triangle Square formed in the late 1980s, when city leaders were looking for a way to give new life to an area of downtown Costa Mesa that they deemed depressed. The City Council voted 4-1 to condemn the buildings and relocated the businesses there – a lamp store, a dentist, a fish store and about 10 others – to make way for the redevelopment project, built in 1992.

Triangle Square changed hands several times over the years and tenants came and went, as did management companies. A big blow came in 2005 when anchor tenants NikeTown Orange County and Virgin Megastore left.

The city initially estimated that Triangle Square would net the city $1 million in sales tax revenue every year, but receipts fell well short of that. For the 2011-12 fiscal year, it generated just $154,614 in sales tax revenue for city coffers.

Smith, a native of Stockton, moved to Orange County in 1999 and started Greenlaw, a real estate and property management company, in 2003. Greenlaw eventually became the property manager for Triangle Square, and Smith had his own ideas about how it could be run, he said.

"How often do you get a retail center at the end of a freeway (with) a traffic light at your front door at the busiest intersection in Orange County?" Smith said. "So that was a draw."

Triangle Square started strong. But successive owners had increasingly less connection with the center and did less to promote it as a whole, said Ed Fawcett, head of the Costa Mesa Chamber of Commerce. The new ownership is an opportunity to do it right, he said.

"With Greenlaw, we've got an owner that is engaged and realizes the importance of community involvement," Fawcett said. "I really think this could be a great turning point."

Vacant corners

The signature dome-topped corner space of The Triangle hasn't had a permanent tenant since NikeTown moved out in 2005; the company said low occupancy in the rest of the building gave it the right to break its lease (Triangle Square management at the time disagreed). Inside, not much has changed. The overhead track lighting that showcased Nike shoes is still in place, as are the gimmicky pneumatic posts that the store used to move shoes. Halloween Bootique uses the empty showroom for about two months a year, but Greenlaw is looking for a permanent tenant, an "iconic" retailer that won't be found at Fashion Island or South Coast Plaza, Smith said.

At the opposite corner of the building, another anchor spot, once occupied by The Gap, sits empty. Smith said he's not concerned that the anchor spots are vacant, though he prefers the word "available."

"When you fill the tough spots, you've got the filets left," he said. Smith said he has been approached by companies interested in those spots. "We're definitely waiting for the right tenants."

If Greenlaw can get the right mix of tenants in place, they shouldn't have a problem filling those empty corner spaces, said Gregory Stoffel, a retail analyst and head of Irvine-based Stoffel and Associates.

Visitors to the Triangle walk past the Saddle Ranch Chop House, at left. The Triangle has several new, popular restaurants, businesses are moving in and parking has been reorganized. It's being remade by the new owners. On the right is a new Mexican restaurant called El Corazon de Costa Mesa. CHRISTINE COTTER, ORANGE COUNTY REGISTER
Visitors to the Triangle walk past the Saddle Ranch Chop House, at left. The Triangle has several new, popular restaurants, businesses are moving in and parking has been reorganized. It's being remade by the new owners. On the right is a new Mexican restaurant called El Corazon de Costa Mesa. CHRISTINE COTTER, ORANGE COUNTY REGISTER
Visitors to the Triangle in Costa Mesa walk past The Saddle Ranch Chop House, on the right. The Triangle has several new, popular restaurants, businesses are moving in and parking has been reorganized. It's being remade by the new owners. On the left is a new Mexican restaurant called El Corazon de Costa Mesa. CHRISTINE COTTER, ORANGE COUNTY REGISTER
Visitors to the Triangle in Costa Mesa walk past The Saddle Ranch Chop House, on the right. The Triangle has several new, popular restaurants, businesses are moving in and parking has been reorganized. It's being remade by the new owners. On the left is a new Mexican restaurant called El Corazon de Costa Mesa. CHRISTINE COTTER, ORANGE COUNTY REGISTER
The Yard House has been a popular restaurant at the Triangle in Costa Mesa. It opened in1999. CHRISTINE COTTER, ORANGE COUNTY REGISTER
The Yard House has been a popular restaurant at the Triangle in Costa Mesa. It opened in1999. CHRISTINE COTTER, ORANGE COUNTY REGISTER
The Triangle in Costa Mesa has several new, popular restaurants, businesses are moving in and parking has been reorganized. It's being remade by the new owners. CHRISTINE COTTER, ORANGE COUNTY REGISTER
The Triangle in Costa Mesa has several new, popular restaurants, businesses are moving in and parking has been reorganized. It's being remade by the new owners. CHRISTINE COTTER, ORANGE COUNTY REGISTER

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